Inventory turnover ratio: Difference between revisions
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The inventory turnover ratio indicates the number of times stock is completely replaced in a year. | The inventory turnover ratio indicates the number of times stock is completely replaced in a year. | ||
It is calculated as: | It is calculated as: | ||
Cost of sales / Inventory. | |||
== See also == | == See also == | ||
* [[Activity ratio]] | * [[Activity ratio]] | ||
* [[DIO]] | |||
* [[Efficiency ratio]] | * [[Efficiency ratio]] | ||
* [[Turnover]] | * [[Turnover]] | ||
Revision as of 08:40, 12 October 2016
An example of an activity ratio or management efficiency ratio.
The inventory turnover ratio indicates the number of times stock is completely replaced in a year.
It is calculated as:
Cost of sales / Inventory.
